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Loop Health raises $12M from Elevation, General Catalyst, others

loop health funding

Loop Health, a health insurance distribution startup, announced that it has raised $12 million in a Series-A round led by Elevation Capital and General Catalyst.

The round also saw participation from Vinod Khosla (through Khosla Ventures), YC Continuity Fund, and Tribe Capital.

Leading angels like Amit Kumar Agarwal of Nobroker, Ramakant Sharma of Livspace, Vidit Aatrey and Sanjeev Barnwal of Meesho, Eren Bali of Carbon Health, and Udemy, Zach Sims of Codeacademy, and Kate Ryder of Maven Clinic also participated in the round.

The Pune-based company has sold more than 50,000 policies to 150 companies in the last 12 months and has been clipping at 50 percent month-on-month.

It has also scaled up its team from just 10 to more than 80 employees and has a presence in Pune, Mumbai, and Bengaluru. The biggest hiring is of Amit Punchhi, who was CBO and CIO at HDFC Life as the president.

The startup plans to use the freshly raised funds to scale up business and for product development via custom insurance products including wellness and physical healthcare clinics, and fuel strategic recruitment, essentially in sales and engineering, said Mayank Kale, Co-founder and CEO, Loop Health.

Loop was founded in 2018 by Mayank Kale, Ryan Singh, Amrit Singh, and Shami Raj and sells only group health insurance plans at present.

Mayank Khanduja, a partner at Elevation Capital, commented, “With 10 percent penetration, health insurance is at a very nascent stage in the country, leading to high out-of-pocket healthcare expenditure.”

Hemant Taneja, a managing partner at General Catalyst said its healthcare investment strategy is directed at health assurance, moving from a system of ‘sick care’ into a health assurance system designed to help people stay well, bend the cost curve, and make quality care more affordable and accessible to all and Loop falls precisely does this.

Vinod Khosla, Founder of Khosla Ventures, said, care delivery has several pain points with conflicting incentives. Loop is transforming the cost equation by empowering payers and providers to work together. With its unique product and affordable pricing, Loop has a vital competitive advantage.

Loop Health seems to be revolutionizing the health insurance space with its unique solutions. I’m sure the company will soon emerge as a leading market player. My best wishes to the team of Loop Health.

Shishir Gupta, Founder and CEO, StartupLanes

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